Posts Tagged: FCRA

4 Ways to Stay Out of the FCRA Line of Fire

FCRA guidelines for employers

The Fair Credit Reporting Act (FCRA) is over 40 years old, but it is only recently that the number of class action lawsuits alleging violations of it have spiked. And unlike traditional legal actions the FTC took against credit bureaus and reporting agencies, these more recent lawsuits target check authorization services, banks, retailers, grocers, and… Read more »

Avoiding the Perils of Social Media Employment “Checks”

A few months ago, Facebook announced that it had 128 million daily unique users in the United States. That’s over 1/3 of the population who viewed, updated, and shared personal bits of information with a network of “friends”, each of whom has his or her own network. Inevitably, a lot of the people on Facebook—and… Read more »

Frequently Asked Questions about Background Checks

Both employers and employees have questions about how background checks work, and how the law regulates them. It’s not always easy to get clear answers because there are so many agencies and stakeholders involved. A good place to start in understanding background checks is to know how the Federal Trade Commission’s and Consumer Financial Protection… Read more »

The Value of a Quality Employment Background Check

Since 9/11 the number of background checks performed on job applicants and employees has ballooned, for reasons ranging from heightened security concerns to legal mandates to conduct background checks. Coinciding with this, the amount of digital information available about individuals has increased many times over, and the Internet has given us easier access to it…. Read more »

FTC to Employers: The FCRA Covers Employment Screening

Two recent settlements announced by the Federal Trade Commission (FTC) drive home the point and serve as an important reminder that employment background screening is subject to the federal Fair Credit Reporting Act (FCRA). You, as an employer, should understand how the FCRA relates to your employment screening program and ensure that your consumer reporting… Read more »

Ban the Box Momentum Claims San Francisco

In the past week the San Francisco County Board of Supervisors passed an aggressive version of Ban the Box legislation. This new ordinance would go beyond many similar laws to include private businesses, and it explicitly incorporates provisions taken from the 2012 EEOC guidance on the use of criminal records in hiring. The “Fair Chance”… Read more »

Employment Screening and the Role of Fairness

Author: Michael Gaul The other day, I arrived at the office greeted by news related to three separate lawsuits involving employment screening companies, their employer-customers, and applicants trying to gain employment. Each of these suits involves a complex web of legal issues and accusations – one involving an alleged  failure to follow adverse action notification… Read more »

In Other Non-News, 5% of Employment Credit Reports Have Errors

Employment credit reports have been in the spotlight in recent years as states battle over whether employers should evaluate workers on the basis of their creditworthiness. Employers routinely use credit reports—for financially sensitive positions and alongside other background screening measures—to assess a candidate’s financial responsibility and potential risk. One argument being played out in the… Read more »

What You Need to Know about the FTC’s Latest Settlement of FCRA Charges

A company that compiled and sold criminal record reports has entered into a settlement agreement with the Federal Trade Commission as a result of charges that it operated as a consumer reporting agency without taking consumer protection measures required by the Fair Credit Reporting Act (FCRA). The FTC’s agreement containing consent order is the first… Read more »

The Positive Side of a Negative Reference Check

According to SHRM, 96% of organizations use reference checks as a screening and selection tool, yet admittedly many experts question the value of reference checks as a valid indicator of job performance. Reference checks have been criticized for their declining value to employers as many companies establish policies against divulging anything more than basic information… Read more »